Financial Feasibility Analysis for Business Development Based on Local Commodities: Corn Noodle

Abstract

Corn processing into noodles not only for increasing the value to this commodity but also could be a business opportunity. More over also develop the diversification non wheat and non rice product or food. Used corn as a raw material noodles is one of the efforts to reduce reliance on wheat flour, the mainly raw material for noodle. Therefore, the financial assessment of the development of the noodles based on corn is very strategic. The result showed that the financial feasibility are Net Presesnt Value is positive amounted Rp. 34.668.709, Internal rate of Return of 59.19%, Payback Periode for 13 months, Net B/C ratio by 1.3. and sensitivity analysis showed that the 5% decrease in revenue and 55 increase in operating expenses, effect on the viability of the project. From the above considerations investment criteria, indicates that the business for onstant noodle based on corn is feasible to run